Cosmos (ATOM) has recaptured the $ 35 mark and is making steady strides, driven by a renewed return of buyers to the crypto market, despite market leaders like Bitcoin and Ethereum experiencing subdued movements. At the time of writing, ATOM / USD is trading at around $ 35.30, up nearly 9% over the past week.
Cosmos’ interoperability gives it an edge in the DeFi area
Cosmos is the 20th largest cryptocurrency by market capitalization and has been slowly gaining traction among investors and projects recently, especially due to its key interoperability function. Its IBC protocol makes it easy to communicate and transfer data between different types of blockchains and crypto experts believe this is one of the most important functions required to keep the market growing for years to come.
It is one of the first and leading players in this field, which gives it a distinct advantage over other players in the DeFi segment. Even if price movement has been dull in recent sessions due to weak market sentiment, several analysts believe that Cosmos has greater potential for growth and adoption as an interoperable blockchain network, and as a result, it will soon see significant uptake on the projects.
For the past year, Cosmos has delivered over 575% ROI to investors, with the price increasing over 220% in the last three months alone. The explosive growth of the DeFi markets even during the downturns in the cryptocurrency market has helped support and fuel the rise of ATOM lately. The muted moves recently, however, could be due to a decline in real volume, fueled by cautious sentiment among investors since China made all types of cryptocurrency transactions illegal.
Several crypto analysts and traders, dubbed the “Internet of Blockchains”, have issued a bullish forecast for the price of Cosmos in the upcoming sessions. One such crypto influencer, operating under the pseudonym “Inmortal”, says that ATOM is ready to achieve a new ATH and to follow in the footsteps of another DeFi player, Avalanche (AVAX). Another crypto strategist Pentoshi expects ATOM to soon see a multi-year breakout against market leader Bitcoin, while it could soar to a new ATH against the US dollar and soar to as much as $ 69-70 in the coming weeks forecast.
Important levels to watch
If you look at the 4-hour price chart of ATOM / USD, almost all moving averages as well as the technical leading indicators MACD and Momentum point to a strong bearish trend. However, the 200 EMA and 200 SMA also indicate some interest from buyers.
It looks like Cosmos price is preparing to test the pivot point at $ 37.81 soon. However, an increase in selling pressure could test the immediate support at $ 30.82 instead. So keep an eye on the price movement between these two levels.